All Forum Posts by: Account Closed

She didn't show the house...

The 4 pads are 18x18x18 w/ rebar
Uprights 4x6
Headers 4x12
Rafters, 2x10x12 2’ centers
Deck, 4x8x3/4 CDX

The existing stucco was removed, nailer boards attached to the house itself, and the cover/deck attached to them.

How does that sound?

I have a line drawing with the drawings, illustrations and permit done by the planning man who helped me. It shows a profile with a stairway and rails penciled in, with the notation that a permit, stairs, railings are required for a deck.
Ofgift

Originally posted by Ivan Jouikov:

The idea is simple:
1) Get a quality property under contract. Explain your intentions to the seller and tell them you'll get them their asking price.
2) Get it to cleanest sell-able condition with minimalistic staging
3) Put out an ad that next Saturday and Sunday there will be open house with open auction and the place will be sold to the highest bidder on Sunday evening. "The bidding starts at <60% FMV>"
4) After you get some bids on Sunday and the open house is over, you start going through the bidder list and calling everyone bu the highest bidder offering them to outbid the highest bidder.
5) You repeat step #4 until you bid up the price as high as you can.

As I said previously, these steps are a variation on Bill's method. This one strikes me as having some devious or less than ethical elements. Bill's is forthright upfront, and transparent.

Originally posted by Ivan Jouikov:

6) Meet with highest bidder and take a non-refundable deposit (specify this as a "condition" of the bid auction).
7) Close.

The idea here is if the highest bidder flakes out, you still have a list of other bidders, everyone just $500 or so lower than the highest bidder.

In real experience, (easy to go to the forum and read some) IF you get enough people there, you make it clear that EVERYONE will be called. In my own experience, I had about 20 bids, 2 at $5, 1 at $10, and several at over $90K. The remaining were from $68K to about 87.
The bid sheets are open for everyone to see and read, to see what others were bidding. Transparency is key.

Those originally at over 90 dropped out on the first go-round. They were investors, and would not pay more than what they could rent it for and make a positive cash flow.
The other group--all were required to make the next bid 500 more than the previous one, also dropped out on the first go round. 3 bidders went several more rounds, and they were all the lowest original bidders. So the idea that all the lower bids are 500 less than the highest is just incorrect. Only one is likely to be, and the others may be several thousand lower.

Though AZ law says that if it's not otherwise stated, every auction has a minimum reserve. Nonetheless, I put it in all my advertising that there was a minimum, and would not tell anyone what it was.

Originally posted by Ivan Jouikov:

Also, if the highest bid doesn't match your minimal price to make a profit - well, you're under no obligation to "sell to the highest bidder" (even though that's what your ad promises? bait and switch?), so you can just walk away from the whole thing.

Well, you make it absolutely clear that either the buyer OR seller can withdraw at any time, no one is obligated, until the final papers are signed. ALL the information sheets also had THAT info on them, in a separate paragraph, and bidders were TOLD that.

Things that can help - get comps in advance and have them available at the open house, as well as pre-sale inspection report.
The presale inspection is so that people have a much better idea of the condition of the house so they can be more confident in their bidding, that they are getting a certain quality. As far as the comps, Bill says no, but in the forum, others have recommended it.

Originally posted by Ivan Jouikov:

Additional streams of income:
1) Have mortgage broker present at open house (and charge them "$5000"%) to pre-approve those who want it (but don't make that a requirement to bid).
2) Sell the bidder list to other investors

Bill not only says no to both, but IIRC, to be sure to tell people that their contact information will NOT be given out or sold to anyone.

Originally posted by Ivan Jouikov:

I have not seen any such ads in my area and I'm wondering if it's because this system is not effective or is it because nobody is utilizing it?
Any thoughts?

I don't recall where you are--city/state, but a couple of people just had successful sales, and a couple of people did not. They described their experiences on the forum, go read them.

So far, I have used limited advertising, but still have had only one call.

I'm really hoping the people who saw it today will make an acceptable offer.
Ofgift
edited to add:
One other thing:
I do not say "will be sold to highest bidder on sunday night"
I change the word "sold" to "offered" and that is what is on my print ads. I WILL offer it to the highest bidder. ...if there's a sale. If I don't get the required number of calls, I will cancel it.

At the risk of repeating myself, Ted said, in my other question re FSBO vs Agent or rent, "Ted said, "your neighbor's house being on the market over a year in the same price range is worrisome but hopefully your home has some qualities it does not. "

I just pulled out my R&M notebook. When I enlarged the patio several years ago, making it 12' wide and 33' long, the full width of the house, I got a city building permit labelled "patio cover" and hoa permission for a patio cover.

BUT I purposely used materials to the city's standard for decks: larger joists, heavier plywood, and I think stronger beams and uprights. I have all the info.
I got a permit for a cover because I didn't think the hoa woud approve a deck at the time.

AFAIK, the only thing the city would require to turn it into a deck (maybe other than purchasing a permit) is a railing all around, and a stairway.
That cover is not indicated on my selling blurb as anything other than "covered patio".

Is there any way I can indicate/advertise that on the blurb and keep out of trouble? I really don't want to go down to the city now, to determine if that is correct. The view to the north is nice, and I had planned to turn it into a deck myself. The cost of deck material was a little more than "just a cover" so I did it.

What do you think?
Ofgift

They're separate items. A pet deposit can be totally non-refundable, a cleaning fee can be refundable if they leave the unit in the same shape they found it.
Keep them separate.

Ofgift

If I understand you correctly, this is similar to a "5-Day Sale" which has been around since about 1993. There is a clear, easy to read book, probably available at your local library or bookstore, by that name, and a website and an active forum, (of the same name) to ask questions and get responses.

My understanding is that in this method, the seller has to be an owner. I don't know if having it under contract qualifies as that. So, do be careful there. I know there are agents that have altered the 5 Day method enough that they can sell, even though they are not owners (I think),

I'm planning a 5 Day Sale the first of August. If I don't get enoug responses, I will cancel the sale.

The author (Bill Effros) of the 5 Day Sale method is probably the first, the others are modelled after his. He tells exactly how to do the whole process. He lets the market determine the bid levels, even only a penny, and the seller calls ALL the bidders, leaving NO one out.

Some states have an automatic reserve unless specifically stated there is no reserve. Make sure yours is one of them, or be sure to advertise that.
Ofgift

edited (in time, lol) to add:
I just went to the site. You get to pay big bucks for that. Bill's book is about $16.00+S&H, and the forum and archives are free. The name of the book is HOW TO SELL YOUR HOME IN 5 DAYS by Bill Effros

Hi, Paul, thanks for the suggestion. I'm advertising an open house for the first of August. Bidding to start way below market value. There has been only one response to the ad.

I did get my "pre-inspected" note onto my mls ad, in fact the lister put "HOME PROFESSIONALLY INSPECTED" and it was, by one of the few state licensed companies here. The summary report is taped to the kitchen shelf.

A realtor called about it today to show it at that time, and asked about the inspection. The few items have been taken care of except one, and we didn't have the materials for it. It will be done Tuesday.

I also made the agent the offer I asked about elsewhere, to offer either a bonus or a one day sales contract for an acceptable offer, her choice.

I won't do lease option. I don't know enough about it, and what I do know, that's not my cup of tea.

Ted said, "your neighbor's house being on the market over a year in the same price range is worrisome but hopefully your home has some qualities it does not. "

I don't want to drop my price just yet, but I am making it clear that I will consider all reasonable offers.

they are the same age, his is 200 sqft bigger, but still I think mine is nicer. His is two bed and den, mine is 3 beds. He has AC, I have a year old cooler, and the electric co says that is the most efficient cooling method, AND I have a one year old roof. His roof will have to be replaced soon.
It will come down to individual taste.

Cross your fingers, toes, and eyes for me, that these folks make a good offer.

Ofgift

That's my goal. I want to. Interested?

Gee, now there's a way to get my name! :mrgreen:

Ofgift!

Thanks, it does. I'm thinking of offering to each agent that calls, if they sell the house, either a one day sales contract or a 1% bonus, whichever they choose.

Can I offer more to more experienced buyers agents?
Ofgift

The buyers agent gets 3% commission. How is this generally split between the broker, the agent and whatever else there is?

Is it the same for the seller's agent?

How does it go for dual agency?
Thanks,
Ofgift